Power Factor Correction Market Size

Power Factor Correction Market size was over USD 2.37 billion in 2024 and is projected to exceed USD 4.64 billion by the end of 2037, witnessing over 5.3% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of power factor correction is evaluated at USD 2.47 billion.

The growth of the market can be attributed to the growing need for correct power supply amongst the end users, such as data centers, manufacturing, and other industries, This is mostly due to the growing adoption of loT in recent years, and the increase in spending in loT, the number of connected devices and other computer-based systems has grown significantly. The projected spending on loT by the end of 2024 is expected to reach around USD 1 Trillion. Moreover, in the year 2021, the spending on IT data centers were estimated to be close to USD 240 Billion.  

Moreover, in the end user industries, there has been a surge in demand for power factor correction as these devices improve the reactive power and reduce harmonics in the equipment. Besides this, with the introduction of PFC integrated circuits (ICs), these correctors are now being utilized widely in commercial, enterprises, and for military purposes, due to the lack of reliable power management systems.